Energy MLP Mgt Qrtrly Earnings Call Highlights
NGL Energy Partner's opening comments prior to reporting results on the low end of Guidance:
"The sector has emerged from the recent challenges and there are significant upside to our business. Obsessing over a quarter's numbers rather than the next three to four years' projected EBITDA just doesn't make any sense."
On Eagle Ford Volumes "We see signs of improvement in the Eagle Ford as well with an expectation that drilling activity will increase as we inch closer to $60 crude prices."
Plains All American on Drilling Lag:
"As we discussed recently, drilling activities have picked up and there're other very encouraging signs on horizon. But I would note there will be a time delay before our transportation volumes and gathering margins will reflect the benefits of this increased activity. And we anticipate the first six to nine months of 2017 will be challenging"
On Logistics Margins:
"We just seen a intense amount of competition. We've probably given 65%, 70% plus of the margin just because of competition out there"
"I don't think there's going to be a large opportunity again for its existing capacity. I think most everybody has tweaked the capacity increases that are available. We think second half of next year of 2017 you could start seeing enough crude. We think by second half of the year, we should start seeing more of a balance between the MVCs and the crude available for, basically for the market."
On a Border Adjustment Tax with Mexico:
"We think it will have the biggest impact on obviously and these are refiners unless there is an exclusion there, how it affects them will create both opportunities and headaches for mid-stream. But we get paid to move barrels. And whether it's an imported barrel or a domestically produced barrel, I think we’re indifferent
Buckeye Partners on Border Adjustment Tax:
"I think a lot needs to take shape before anyone can really give you a precise answer on that. But I think with the work that we’ve done looking at our asset base in our business, I think in the long term it is probably a fairly marginal impact net-net on the business."
On Trafigura's Splitter Termination with Magellan Midstream:
"We are aligned. We have a great relationship with Trafigura, they are a 20% owner in our South Texas hub and we have worked really well with them and continue to work well with them."
Q4 Distributions Announced This Week